Exim Bank sells 10% in Caps Shreya to Shreya Life Sciences

Mumbai: The Export-Import Bank of India has sold its 10-per cent stake in Caps Shreya Pvt Ltd to Shreya Life Sciences for an undisclosed amount. Caps Shreya, earlier known as Caps Zimbabwe Ltd, was a joint venture between Rallis India, Zimbabwe and Exim Bank.

Following the Rallis India's decision to exit from the pharmaceutical business completely by selling its pharmaceutical division to the Moscow-based non-resident Indian group company, Shreya Impex Pvt Ltd, for a total consideration of Rs 49 crore in 2001, Exim Bank has been reviewing the fate of its stake in the Zimbabwe company.

Says Exim Bank chief general manager S R Rao: "Our intention was not to make high returns from any of our equity investments. We want to help the Indian companies to set up new firms overseas. In the process, the bank has to support the firm either in the form of debt or in the form of equity. We had supported Rallis India to set up Caps in Zimbabwe by picking up a 10-per cent equity in the project and once the opportunity came we sold our stake in Caps back to the new promoters."

Caps is one of the leading pharmaceutical marketing companies in Zimbabwe. Rallis and Exim Bank had acquired 40 per cent and 10 per cent stakes, respectively, in Caps from the Zimbabwe government. The acquisition of Caps Zimbabwe (now Caps Shreya) was the first overseas acquisition funded by Exim Bank.